WD-40 Co (NASDAQ:WDFC) stock rose 5.09% (As on January 9, 11:34:00 AM UTC-4, Source: Google Finance) after the company reported first quarter earnings that fell short of Wall Street expectations, despite reaffirming its full-year guidance. Operating income was $23.3 million, a decrease of 7 percent from the prior year fiscal quarter. Net income was $17.5 million, a decrease of 8 percent from the prior year fiscal quarter.

Moreover, the Americas segment represented 47 percent of total net sales in the first quarter. Total net sales in the Americas increased 4 percent compared to the prior year quarter, driven by a 5 percent increase in maintenance product sales. This growth was primarily attributable to higher sales of WD-40® Multi-Use Product in Latin America and the United States, where net sales rose by $1.4 million and $0.3 million, respectively. Sales of WD-40® Multi-Use Product in Canada remained constant. The EIMEA segment represented 38 percent of total net sales in the first quarter. Total net sales in EIMEA increased 2 percent compared to the prior year quarter driven by a 5 percent increase in maintenance product sales. The Company completed the divestiture of its entire homecare and cleaning portfolio in the United Kingdom during the fourth quarter of fiscal year 2025. The Asia-Pacific segment represented 15 percent of total net sales in the first quarter. Total net sales in Asia-Pacific decreased 10 percent compared to the prior year quarter, primarily due to a 12 percent decrease in sales of WD-40® Multi-Use Product.

WDFC in the first quarter of FY26 has reported the adjusted earnings per share of $1.28, missing the analysts’ estimates for the adjusted earnings per share of $1.45. The company had reported the adjusted revenue growth of 1 percent to $154.4 million in the first quarter of FY26, missing the analysts’ estimates for revenue of $161.2 million. On a constant currency basis, sales would have decreased 2%. The earnings disappointment stemmed primarily from timing-related softness in distributor markets, which offset an 8% growth in direct markets. Sales in the Asia-Pacific segment were particularly weak, dropping 10% YoY, with the company’s Asia distributor markets seeing a 33% decline due to order timing issues. Bright spots in the quarter included WD-40 Specialist sales, which increased 18%, and e-commerce sales, which grew 22%. Gross margin improved to 56.2%, up 140 basis points from the prior year.

Despite the quarterly miss, WD-40 reaffirmed its fiscal 2026 guidance, projecting revenue between $630 million and $655 million and earnings per share between $5.75 and $6.15. Management expressed confidence in achieving results toward the mid-to-high end of these ranges.